What are accrued salaries and wages?

Accrued salaries and wages are paid to an employee due to him or her by the end of each accounting period and remain unpaid. All these are recorded as liabilities such that adjusting journal entries are made in order to match the expenses and revenues within the same period. Accrued wages provide proper reporting of the finances, even though it can be paid in the subsequent period. This is based on the concept of accrual basis of accounting where expenses are recognized when they are incurred but not when they are paid. It also assists in making a clear financial picture of the liabilities of a business.